CROP Infrastructure Corp (CSE:CROP) (OTCMKTS:CRXPF), the cannabis-focused group, said it is planning to conduct a placing of convertible debentures to raise up to C$1 million in total.
The proceeds are expected to be used to continue to grow the firm's US operations and for general working capital, the Vancouver-headquartered firm said in a regulatory statement.
DEEP DIVE: CROP Infrastructure bridges a gap with a focus on real estate assets and cannabis branding
The debentures will mature one year from the closing of the offering and will bear interest at a rate of 10% a year, payable quarterly in cash.
Holders may convert all or any part of the principal outstanding under the debentures into company shares at C$0.30 each and unpaid interest may be converted into shares at a conversion price of C$0.30 each.
Each subscriber to the offering will receive one share purchase warrant for each C$0.30 of principal amount. Each warrant entitles the holder to acquire one company share at an exercise price of C$0.50 per warrant share for three years from closing.
Crop has a portfolio of cannabis branding, CBD and real estate assets through its wholly and partially-owned subsidiaries.
Earlier this month, the group revealed its tenant Park Project had launched its Tiff CBD cartridge line, becoming self-sustainable in the process.
One of 16 brands in CROP’s portfolio, Park Project is the first of the company’s assets to achieve self-sustaining status within 12 months of its acquisition. According to CROP, Park Project has accrued US$642,000 in lease, rental and brand fees.
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